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    Call and Put Option

    Posted By : Devashish / Published on : 22-Jan-2019 01:02 PM / View : 498 / Comment : 2

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    Dear Members

    Please elaborate the meaning and characteristics of Call Option and Put Option in Stock Market.

    It is said that Value of Option depends upon the Underlying Price, so also clarify the meaning of underlying here??
    Read more on : option call

    • Dear Sir,

      Call and put options are derivative investments [their price movements are based on the price movements of another financial product, called the underlying.(The stock, bond, or commodity is called the underlying asset)]. A call option is bought if the trader expects the price of the underlying to rise within a certain time frame. A put option is bought if the trader expects the price of the underlying to fall within a certain time frame. Put, and calls can also be sold or written, which generates income, but gives up certain rights to the buyer of the option.

      • A call is an options contract that gives the buyer the right to buy the underlying asset at the strike price at any time up to the expiration date.
      • A put is an options contract that gives the buyer the right to sell the underlying asset at the strike price at any time up to the expiration date.

      Thank you.

      11-04-2019 / 05:10:51 AM
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